Wed, May 23, 2018
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Emerging markets continue to offer opportunity, and a useful approach to economics for developed markets - Van Eck Global

Wednesday, June 09, 2010

From Kirsten Bischoff, Opalesque New York:

"This month [May], we played a lot on the short side," says Eric Fine, former head of emerging markets research and founder of emerging markets prop trading at Morgan Stanley. He is current Portfolio Manager of the emerging markets macro G-175 Strategy at Van Eck Absolute Return Advisers Corp. Van Eck manages $22 billion, including $3 billion in emerging market focused funds.

For Fine and his team, focusing on putting emerging market asset prices in the right valuation context to each other and to developed markets has been a big driver behind shifting the portfolio to capture performance in both upward and downward moves.

Typically, the G175 strategy focuses on fundamentals, but when technical moves are in play, the most crowded moves (typically those based on fundamental analysis) are often the ones that suffer the most. Making money every month is the focus, therefore, positions that the team sees priced well and that are cheap are left on the table until markets stabilize. "Right now the most bullish we want to be is no risk on," he says.

This has meant collapsing the portfolio's investment horizon from 3-12 months to mere hours. "For May, we pretty much had a 24 hour investment horizon," Fine says. "Shorts can really punch you in the nose because there is always the risk of intervention on the other side."

Overall, EM investors struggle to commit to market opportunities The wild......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Investing - Hedge funds hike Smurfit Kappa positions amid takeover deal hopes, Hedge fund IBV Capital digs deep to unlock long-term value in a competitive market, Eisman of 'The Big Short' fame recommends shorting Deutsche Bank[more]

    Hedge funds hike Smurfit Kappa positions amid takeover deal hopes From Irishtimes.com: Two US hedge funds, Davidson Kempner and York Capital, have accumulated a combined 4.74 per cent interest in cardboard box maker Smurfit Kappa using financial derivatives. It comes as many investors cl

  2. Foundations of hedge fund managers gave big to controversial donor-advised funds[more]

    In the world of philanthropy and tax-deductible charitable giving, the explosion of donor-advised funds has touched off intense debate. Now, there is evidence that the DAF boom is being further fuelled by hedge fund foundation money. Four of the top five foundations that gave the most to large do

  3. Third Point to raise $400 million for SPAC, Farley to run it[more]

    From Reuters.com: Daniel Loeb's hedge fund Third Point LLC plans to raise $400 million for a "blank check" company which will be run by outgoing stock market operator NYSE Group President Thomas Farley, according to a regulatory filing made on Tuesday. The new company, referred to on Wall Stre

  4. Study: For hedge funds, smaller is better[more]

    From Institutionalinvestor.com: The smaller the hedge fund is, the better its performance is likely to be, according to a new study. The study - "Size, Age, and the Performance Life Cycle of Hedge Funds," released April 26 - sought to determine whether a hedge fund's size and age had any effect on i

  5. Hedge fund returns rose in April for first gain since January[more]

    From Bloomberg.com: Bloomberg Hedge Fund Database shows returns flat this year - Currency strategies had the biggest monthly gain at 13% Hedge fund returns increased 0.78 percent in April, reversing two consecutive monthly declines. The swing of 134 basis points was driven by gains in all seven